The LOGCAP III contract was awarded to KBR in December 2001.

The 10-year task-order contract had a one-year guarantee and nine one-year options.

KBR currently has more than 50,000 employees and subcontractors in Iraq, Kuwait, Afghanistan, Uzbekistan and Djibouti.

Under the LOGCAP III contract, KBR stands to earn a base fee of 1 percent of the contract’s negotiated costs, and an award fee of up to 2 percent of the contract’s negotiated estimated costs.

2006

The Army says it is breaking the LOGCAP IV contract into two: a planning contract, which would have a contractor drawing up plans for supporting future contingencies and exercises, and a separate execution contract, which would be actually providing services at U.S. military facilities, including in war zones.

The Army is planning an even bigger change: it will hire up to three prime contractors for the LOGCAP IV contract who will compete among themselves for awards to perform individual task orders -- for instance, running dining facilities or providing cargo transportation services.

Under the new construct, the planning contractor would also help draw up and monitor the task orders and the fulfillment of the execution contract.

IAP Worldwide Services announces that it wants to compete against KBR for LOGCAP IV.

2007

FEBRUARY 2007

KBR CEO Bill Utt tells analysts in a conference call that he expects Army to award LOGCAP IV during first quarter.

The Army Sustainment Command awards Serco Group the first deal under LOGCAP IV. The contract with the Army Sustainment Command has a potential value of $225m. The single award, indefinite-delivery/ indefinite-quantity contract has a one-year base period, with four annual options, for a five year total period.

Under this contract, Serco’s North American business will oversee the performance of other contractors and provide programme management analysis, cost analysis and logistics planning for the Logistics Civil Augmentation Program (LOGCAP IV).

This award builds on Serco’s current training and financial services work on both LOGCAP III and its Price Fighter service, which has helped the US Navy, Army and Air Force achieve cost savings.

MAY 2007

Michael Baker Jr., Inc., an engineering unit of Michael Baker Corporation (AMEX:BKR) , announced that it has signed a subcontractor agreement with Serco Inc. in support of LOGCAP IV. Under this contract, Serco Inc. and Baker will provide program management and technical support to  Army Sustainment Command's management of logistic execution contractors, and may include Baker providing support to domestic and international military and humanitarian efforts.

JUNE 2007

The Army Sustainment Command selects KBR, along with Fort Worth-based DynCorp International LLC and Fluor Intercontinental of Greenville, S.C., to provide an array of logistical support services for U.S. troops.

Dyncorp International is teamed with CH2M Hill and Agility Defense and Government Services (formerly PWC Logistics) for LOGCAP IV.

ITT's Systems Division is teamed with Fluor.

The indefinite quantity, indefinite delivery contract has a one-year base with nine option years that could be worth up to $150 billion. The three companies are each capped at $5 billion per year, although the Army does not expect the firms to reach the maximum value in any given year.

JULY 2007

IAP Worldwide Services Inc. protests the Army's decision to award three rivals multi billion dollar contracts to provide support to U.S. troops overseas.

IAP submitted a bid for the LOGCAP IV contract with a team that includes, but is not limited to: Lockheed Martin; CACI; Black & Veatch; SODEXHO; Maersk; Blackwater; 3Di Technologies, LLC; CodePlus; Comark; Crawford; Danish Camp Supply; EDS; HD Supplies - Home Depot; ITG-SP; LVI; M1 Support Services; Mar, Inc.; Microsoft; Midwest – ATC; Pinkerton; Plexus Scientific; SEI; and Sunbelt.

Contingency Management Group LLC, a team composed of AECOM Government Services, Shaw Group and PAE Government Services, filed a protest with the Government Accountability Office, claiming that the Army's Sustainment Command improperly evaluated the group's proposal for the Logistics Civil Augmentation Program (LOGCAP) IV contract.

OCTOBER 2007

After protests are upheld, it is announced that LOGCAP IV award is to be cancelled and rebid. The GAO (Government Accountability Office) upholds the two protests, saying the Army didn't give enough weight to Pentagon auditors' concerns about the past performance of KBR.

The GAO stated that the Army also gave Fluor Corp. "unequal treatment" when awarding the new contract. The Army approved Fluor's proposal even though the proposal relied on different assumptions than those listed in the contract solicitation — a shortcoming that hurt other bidders' proposals.

NOVEMBER 2007

The Army says that is considering whether to reopen the source selection process for the $150 billion Logistics Civil Augmentation Program (LOGCAP) IV contract after GAO sustained the protests of two losing bidders.

Army spokesman Daniel Carlson said the service was "reviewing the [decision's] impact and evaluating our options. We will continue to support our troops in the field through our LOGCAP III contract while we work through this issue."